The tax issue came to a head last month, when a Democratic plan to raise $21 billion over the next 10 years by hiking taxes for the nation’s five biggest oil companies failed a key procedural vote in the Senate. Manchin joined all but three Senate Democrats in supporting the legislation.

But Wednesday, Manchin made clear he thought there was a better, middle-of-the-road approach, with industry-specific tax credits and other incentives tied to the price of the oil, natural gas, coal or other commodities at issue. Under that approach, if prices dip below a certain threshold, the incentives would be available to energy producers, Manchin said. But when prices are high, the tax breaks would be off limits, whether they are for coal, ethanol or oil.

That “would be a good compromise,” Manchin said.

Manchin also weighed in on other pressing energy policy issues:

on the possibility the U.S. government will deny TransCanada’s plans to build the Keystone XL pipeline extension to deliver oil sands crude from Alberta to Gulf Coast refineries: “I would hope our policy would be very favorable for ongoing business with our friends.” “It’s truly a godsend for America to have that supply from a neighbor that is friendly.” “I can assure you (the Canadian oil) is going to be used somewhere in the world, if it’s not used in the U.S.”

on the threat of expanded federal regulation of the hydraulic fracturing process used to produce natural gas: “I assume EPA will be very aggressive — if anything, overaggressive — because that’s what they’ve done with coal.” Although West Virginia has a process where legislatively mandated regulations are reviewed by state lawmakers, there is nothing similar on the federal level. That’s a shame, Manchin said, because, while voters can fire elected representatives, “you can’t fire (a regulator). You can’t even find them.”